China’s economic power over the US is now substantial, and will limit not only America’s influence in the financial markets, but also its capacity to use military power. If this forces America back towards what the international-relations scholar Joseph Nye calls “soft power and multilateral diplomacy,” it may well be a good thing. But such approaches are anathema to the US Republican Party...and they might unnerve the many Asians who are nervous at China’s growing military might.

Water is fast becoming a cause of competition and discord between countries in Asia, where per capita freshwater availability is less than half the global average. The growing water stress threatens Asia’s rapid economic growth and carries risks for investors potentially as damaging as non-performing loans, real estate bubbles and political corruption.
By having its hand on Asia’s water tap, China is therefore acquiring tremendous leverage over its neighbours’ behaviour.

Following the work of American scholar Joseph Nye, it is common for analysts to limit the debate on national strength to hard and soft power, with a combination supposedly forming "smart power." However, the patterns of Beijing's transformation invite an enlargement on these reflections to consider a third dimension of power, "subtle power," which is, to a certain extent, the application of some of China's highest philosophical principles in the field of strategy.

...the project shows the scale and ambition behind China's push to revitalize red tourism. For years, the industry has been dominated by sleepy tours of leaders' homes and historical sites. That's changing. Red tourism is a big business. Between 2004 and '10, a total of 1.35 billion people have gone on red tours...However, the red-tourism market depends heavily on government-sponsored group tours

DreamWorks Animation has become the second Hollywood studio to enter into a distribution agreement with China's top online video site, Youku.com. Youku said Monday that it had signed a deal with the Glendale-based animation studio to distribute the "Kung Fu Panda" movies in China, marking the first time that DreamWorks releases have been made available in that country through the Internet.

The emergence of Weibo promotes public interaction to an unprecedented level and enables limitless discussions on topics like the bullet train crash and the scandal surrounding the Red Cross Society of China. Weibo serves as a watershed mark for China's media environment.

Chinese regulators have shut down 6,600 websites in their efforts to clamp down on “illegal public relations deals” that employ similar tactics for commercial gain. Telecommunications authorities shut the websites down as part of a campaign against bad public relations practices launched in April by the State Internet Information Office and several other government agencies.

With the twin crises of the American budget deficit and the European public borrowing emergency, China has ample worries. China is nonetheless active in bilateral relations with EU member states, and this involves commercial diplomacy, high-level visits and public diplomacy. The last increasingly revolves around the notion of “helping friends,” whether these are nations in need of investment or simply cash.